Gold futures closed higher Monday, with investors seeking a safe haven after some disappointing U.S. jobs data last week and rising inflation in China. The precious metal was also supported by a weak dollar that pared early gains against some of the major currencies.
Gold for June delivery, the most actively traded contract, gained $13.80 or 0.9 percent to close at $1,643.90 an ounce Monday on the Comex division of the New York Mercantile Exchange.
Gold traded at an intraday high of $1,649.90 an ounce and a low of $1,636.70 an ounce.
Last week, gold lost nearly 3 percent after Federal Reserve policymakers said that the U.S. economy is gradually improving, without making any mention of further monetary stimulus.
The dollar index, which tracks the U.S. unit against six major currencies, pared gains to trade lower at 79.826 on Monday, from 79.840 in North American trade late Friday. The dollar scaled a high of 80.10 intraday, with a low of 79.65.
The euro was trading higher against the dollar at $ 1.3125 on Monday, as compared to $1.3102 late Friday. The euro had scaled a high of $1.3117 intraday with a low of $1.3034.
In economic news, U.S. employment saw continued growth in March, according to a report from the Labor Department on Friday, although well below economists expectations. Non-farm payroll employment increased by 120,000 in March, following an upwardly revised increase of 240,000 jobs in February. Economists expected the addition of about 201,000 jobs compared to the increase of 227,000 jobs reported for the previous month.
Consumer price inflation in China accelerated by 3.6 percent in March, up from 3.2 percent in February. Analysts expected consumer price inflation to increase 3.3 percent. The data dampened expectations that China will introduce fresh monetary easing measures in the near-term.
by RTT Staff Writer
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